GOVERNMENT FAILS IN ITS DUTY TO TACKLE UNFAIR TRADING

The Tenant Farmers Association (TFA) has described the Government’s decision not to extend the remit of the Groceries Code Adjudicator (GCA) as an abdication of its duty to tackle market failures in the groceries supply chain.

TFA Chief Executive George Dunn said “the Government had an opportunity to ensure proper regulation throughout the supply chain and has simply dropped the ball. The GCA has been doing some great work in tackling unfair practices in the way retailers treat their direct suppliers but there is no protection for indirect suppliers, including farmers, from poor treatment in the supply chain”.

“It is in all of our interests to ensure that we have a fair, sustainable and ethical groceries supply chain and this cannot be left to the vagaries of the marketplace,” said Mr Dunn.

The Government has at least come forward with a number of ideas to try and improve some of the poor practice it discovered in its call for evidence including the following:

• A £10 million farmer collaboration fund to encourage farmers to have greater ability to influence contracts. • A statutory instrument setting out terms for mandatory contracts in the dairy sector. • A statutory instrument setting out rules for mandatory sheep carcass recording. • Asking the newly appointed Small-business Commissioner to look at the issue of late payments. • Adding to the list of retailers covered by the current Groceries Code.

“The TFA sees this list of offerings as second-best in comparison to the comprehensive regulatory framework that could have been achieved through extending the remit of the GCA. However, we will work with Government to ensure that these are implemented in as robust a way as possible,” said Mr Dunn.

“Recently, Neil Parish MP, Chair of the Environment Food and Rural Affairs Select Committee sent a strongly worded letter to Ministers in both DEFRA and BEIS calling for an extension in the remit of the GCA. The TFA hopes that Neil’s Committee will call Ministers from both Departments to account in explaining why the Government has decided not to follow the advice of his cross party committee,” said Mr Dunn.

Ref: MR/08 Date: 16 February 2018

Notes for Editors:

For further information contact Julia Meadows on 0118 930 6130 or 07887 777157 or George Dunn on 07721 998961.